# Football Economics · Football Level 7: Upper-Advanced

Football · Level 7: Upper-Advanced · Insporta Book (https://book.insporta.app/football/level-7/football-economics/)

Football Economics in Football (Level 7: Upper-Advanced) on Insporta: 100 sourced facts behind 10 tests. Covers: where a club's money comes from; and more.

How the money works in football: revenue streams, television, matchday and commercial income, wages, transfer accounting, solidarity payments, parachutes, ownership and the financial rules, each figure tied to its season.

## Test 1: Where a club's money comes from

- Deloitte groups club income into those three streams and leaves out player sales. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Deloitte's 2025 Money League showed Real Madrid's income passing €1bn, helped by the rebuilt Bernabéu. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Transfer profits vary wildly from year to year, so the ranking sticks to recurring income. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- UEFA's payments come mostly from selling television rights, so they are grouped with broadcast income. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Income says nothing about spending; many clubs use revenue growth to raise wages and fees. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Without big broadcast deals, developing and selling players is the main way to balance the books. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Domestic and overseas television money gives even mid-table English clubs more than many Champions League sides. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Collective selling puts all the money in one pot before it is divided among the twenty clubs. (Source: Premier League, La Liga and broadcaster announcements)
- Clubs sell season tickets before the season, earn UEFA money as matches are played, and get merit money once positions are final. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Television money makes up about half of Premier League income, far more than tickets or sponsorship. (Source: Deloitte Football Money League and Annual Review of Football Finance)

## Test 2: Broadcasting deals

- Sky and TNT Sports agreed a record four-year deal in December 2023. (Source: Premier League, La Liga and broadcaster announcements)
- The other half is split between merit payments by position and facility fees for live matches. (Source: Premier League, La Liga and broadcaster announcements)
- A royal decree ended individual deals, which had let Real Madrid and Barcelona take far more than the rest. (Source: Premier League, La Liga and broadcaster announcements)
- Pooled money shared by formula protects competitive balance; individual deals favour the biggest clubs. (Source: Premier League, La Liga and broadcaster announcements)
- Clubs shown more often on live television receive more facility fees. (Source: Premier League, La Liga and broadcaster announcements)
- Overseas income was shared equally until 2019; since then the growth above the previous level is partly paid by league position. (Source: Premier League, La Liga and broadcaster announcements)
- Viewers pay to watch as it happens, which makes live packages the most valuable part of any deal. (Source: Premier League, La Liga and broadcaster announcements)
- Deals usually run for three or four seasons and are sold well before the first of them starts. (Source: Premier League, La Liga and broadcaster announcements)
- Live league football began in 1983, Sky's first Premier League season was 1992-93, and the £6.7bn deal starts in 2025-26. (Source: Premier League, La Liga and broadcaster announcements)
- Live matches cannot be shown between 2.45pm and 5.15pm on Saturdays, to protect attendances across the leagues. (Source: Premier League, La Liga and broadcaster announcements)

## Test 3: Matchday income

- Boxes and premium lounges sell food, drink and service with the seat, at many times the price of a normal ticket. (Source: Club accounts and commercial announcements)
- The clubs agreed the cap after supporters' campaigns; it has been renewed since. (Source: Club accounts and commercial announcements)
- Standing terraces and fan influence under the 50+1 model keep many German tickets well below English prices. (Source: Club accounts and commercial announcements)
- Barça moved to the Estadi Olímpic Lluís Companys for the 2023-24 season and beyond while the Camp Nou was rebuilt. (Source: Club accounts and commercial announcements)
- Grounds are fuller than ever, but broadcast income has multiplied far beyond what tickets can match. (Source: Club accounts and commercial announcements)
- Summer season-ticket money helps pay wages and fees during the months with no matches. (Source: Club accounts and commercial announcements)
- A stadium used only for 25 or so matches a year earns nothing on the other 340 days. (Source: Club accounts and commercial announcements)
- Standing is the cheapest way into a top-flight match; premium hospitality is by far the most expensive. (Source: Club accounts and commercial announcements)
- The Emirates opened in 2006, Tottenham's ground in 2019 and Everton's new home for 2025-26. (Source: Club accounts and commercial announcements)
- Tottenham's retractable pitch reveals an artificial surface for American football and events, earning money on non-match days. (Source: Club accounts and commercial announcements)

## Test 4: Commercial and shirt deals

- It was the biggest kit deal in football at the time, paid over a decade from 2015-16. (Source: Club accounts and commercial announcements)
- The clubs agreed the ban in 2023; gambling logos may still appear on sleeves and elsewhere. (Source: Club accounts and commercial announcements)
- Barça had never sold the front of the shirt; from 2011 the Qatar Foundation became its first paid shirt sponsor. (Source: Club accounts and commercial announcements)
- Naming rights are a commercial deal, like shirt and training-kit sponsorship. (Source: Club accounts and commercial announcements)
- Sponsors pay for reach, and clubs followed worldwide can sell far more partnerships. (Source: Club accounts and commercial announcements)
- Many deals combine a guaranteed fee with a percentage of merchandise sales above a target. (Source: Club accounts and commercial announcements)
- Splitting sponsorships by region lets a club sell the same category several times. (Source: Club accounts and commercial announcements)
- UNICEF appeared in 2006, sleeve sponsors in 2017-18, and the gambling ban starts in 2026-27. (Source: Club accounts and commercial announcements)
- The fixed fee is only part of it; the royalties depend on how well the shirts sell. (Source: Club accounts and commercial announcements)
- Sleeve deals added a new commercial slot worth millions a year to the bigger clubs. (Source: Club accounts and commercial announcements)

## Test 5: Wages and the wage bill

- Wages above about seven-tenths of income leave little for transfers, debt or a bad season. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Each club may name a small number of designated players whose wages count only partly against the cap. (Source: MLS roster rules and regulations (Designated Player Rule))
- Clubs pay separately for the right to use a player in marketing, often through his own company. (Source: Club accounts and commercial announcements)
- Automatic cuts protect a relegated club from paying top-flight wages on second-tier income. (Source: Club accounts and commercial announcements)
- Paying extra for appearances, goals or titles ties the wage bill to the success that earns the income. (Source: Club accounts and commercial announcements)
- The ratio is the standard quick test of how much of a club's income goes on pay. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- Long contracts often build in annual increases, loyalty payments and bonuses that grow over time. (Source: Club accounts and commercial announcements)
- The comparison matters most: a ratio that is normal in one league may be dangerous in another. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- The basic wage is guaranteed; appearance money depends on playing, and a title bonus on the team winning. (Source: Club accounts and commercial announcements)
- Club C spends well over 70% of its income on wages; Clubs A and B are below that line. (Source: Deloitte Football Money League and Annual Review of Football Finance)

## Test 6: How a transfer fee is accounted

- The European Court of Justice also struck down quotas on EU players, changing the transfer market for good. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- Very long contracts had let clubs spread fees thinly; UEFA and later the Premier League capped amortisation at five years. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- With no fee to write off, nearly the whole transfer price counts as profit that year. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- The selling club keeps a percentage of any future fee, which can be worth more than the original sale. (Source: Club accounts and commercial announcements)
- Add-ons depend on appearances, goals or trophies, so the full fee is only paid if they happen. (Source: Club accounts and commercial announcements)
- Profit on a sale is the price minus the fee not yet written off. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- An eight-year deal cut the yearly cost of a signing, helping clubs pass spending rules; the five-year cap closed it. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- The fee is not an expense on day one; it is spread over the contract. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- Fees are often paid over several years, and the last pieces depend on events after the move. (Source: Club accounts and commercial announcements)
- Spreading the fee in equal parts over the contract is amortisation: £10m a year for five years. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))

## Test 7: Solidarity and training compensation

- Five percent is set aside and shared among the clubs he played for between the ages of 12 and 23. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- It rewards clubs for training young players and is owed until the end of the season of his 23rd birthday. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- The Clearing House collects and pays out the money so small training clubs are not forgotten. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- A share of a record fee for a player they coached at 14 can be worth more than their annual budget. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- Part of the competition's income goes to clubs knocked out in qualifying and to domestic leagues. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- Seasons from 12 to 15 earn less than seasons from 16 to 23, when training is closer to the professional game. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- Tracing a player's training clubs across countries was hard, and many entitlements went unclaimed. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- A season between 12 and 15 earns 0.25% of the fee, a season from 16 to 23 earns 0.5%, and the whole pot is 5%. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- The buying club withholds the solidarity share and it is passed on to the clubs that trained the player. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)
- Each of those eight seasons earns 0.5%, and each season from 12 to 15 earns 0.25%, adding up to 5%. (Source: FIFA Regulations on the Status and Transfer of Players; FIFA Clearing House)

## Test 8: Parachute payments and promotion money

- Clubs relegated after a single season get two years of payments; longer stays earn three. (Source: Premier League, La Liga and broadcaster announcements)
- Money from the Premier League lets relegated sides keep bigger squads than clubs without parachutes. (Source: Premier League, La Liga and broadcaster announcements)
- Parachute money and a strong squad help some clubs bounce straight back, and then drop again. (Source: Premier League, La Liga and broadcaster announcements)
- Clubs in the Football League that do not receive parachutes get a smaller annual payment from the Premier League. (Source: Premier League, La Liga and broadcaster announcements)
- The regulator can oversee club finances and ownership, and has powers over how money flows down the pyramid. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- Even the smallest share of Premier League broadcast income is several times a Championship club's revenue. (Source: Premier League, La Liga and broadcaster announcements)
- Clubs spend beyond their income hoping to go up; in the Championship wages often exceed total revenue. (Source: Deloitte Football Money League and Annual Review of Football Finance)
- The payments fall each year, so the best chance to bounce back is straight away. (Source: Premier League, La Liga and broadcaster announcements)
- Parachutes and contract clauses soften the fall, but most relegated clubs still have to sell. (Source: Premier League, La Liga and broadcaster announcements)
- A club relegated after only one season gets the first two payments; the third is for longer stays. (Source: Premier League, La Liga and broadcaster announcements)

## Test 9: Ownership models

- The four had shown healthy finances, so they kept their member-owned model; others became sporting limited companies. (Source: Club ownership records and UEFA multi-club decisions)
- John Textor's holdings linked Palace and Lyon, and UEFA's multi-club rules let only one of them play in the Europa League. (Source: Club ownership records and UEFA multi-club decisions)
- It owns or part-owns Manchester City, New York City FC, Melbourne City, Girona and others. (Source: Club ownership records and UEFA multi-club decisions)
- The trust took control after the club's financial crisis and runs it on a members' model. (Source: Club ownership records and UEFA multi-club decisions)
- The Glazer family's leveraged buyout left the club paying interest on the money borrowed to buy it. (Source: Club ownership records and UEFA multi-club decisions)
- Listed clubs such as Borussia Dortmund and Juventus can raise capital, but must publish more information. (Source: Club ownership records and UEFA multi-club decisions)
- Members own the club, so decisions such as moving grounds or selling up need the fans' consent. (Source: Club ownership records and UEFA multi-club decisions)
- Dortmund listed in 2000, Juventus in 2001 and Manchester United in New York in 2012. (Source: Club ownership records and UEFA multi-club decisions)
- Trust ownership turns supporters into the club's owners, voting on who runs it. (Source: Club ownership records and UEFA multi-club decisions)
- Lyon, then also controlled by John Textor's Eagle Football, finished higher in its league, so UEFA kept Lyon in the Europa League. (Source: Club ownership records and UEFA multi-club decisions)

## Test 10: Financial rules: FFP, squad cost, PSR

- Clubs had to show they spent no more than they earned, with some losses allowed, from the 2011-12 monitoring period. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- The limit assumes owners cover part of the losses; clubs above it face sanctions such as points deductions. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- The original ten-point penalty was cut to six on appeal; a second two-point deduction followed the same season. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- The charges, covering nine seasons, went to an independent commission. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- It limits how much of its income a club may spend on players' wages, amortised fees and agents. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- The new rule controls the main cost driver, player spending, rather than only the bottom line. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- Forest lost four points for exceeding the loss limit, in the same season as Everton's deductions. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- The limit was phased in from 2023-24 to 2025-26, tightening by ten points each season. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- FFP monitoring began in 2011-12, the Premier League deductions came in 2023-24, and the 70% limit applied in 2025-26. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))
- After 90% and 80% in the first two seasons, the limit settled at 70% from 2025-26. (Source: UEFA Financial Sustainability Regulations; Premier League Handbook (PSR))

Sources: IFAB Laws of the Game / FIFA & UEFA regulations and technical reports / Opta & StatsBomb definitions / coaching literature / peer-reviewed research

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